It also lowered its ICR requirements for basic rate taxpayers
Buy-to-let specialist lender Landbay has reduced the rates on its two-year fixed rate mortgages and lowered its income cover ratio (ICR) requirements for basic tax rate borrowers.
This is the lender’s second interest rate reduction of 2023, with its two-year fixed rate range falling by up to 0.30% for standard, small houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), plus trading companies.
The following are examples of Landbay’s two-year fixed rate products at 75% LTV with a 3% product fee:
- Standard mortgage at 5.09%, reduced by 0.20%
- Small HMOs/MUFBs at 5.29%, reduced by 0.10%
- Trading company standard product at 5.39%, reduced by 0.30%
Landbay said it is also bringing its ICR requirements in line with the wider market for basic rate taxpayers to 125% from 140%. This applies to standard properties as well as HMOs and MUFBs.
“Less than two weeks into the new year and we are pleased to announce our second rate reduction for 2023, which is great news for brokers and their landlord clients,” Paul Brett (pictured), managing director, intermediaries at Landbay, commented.
“We have also dropped the ICR calculation for basic rate taxpayers, bringing it in line with the wider market. This will help smaller landlords to borrow more than they previously could.”
Landbay also recently re-released its special edition mortgage range of five-year fixed rate buy-to-let products, available only for a limited time on standard properties and new builds.
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